Ronald W. Hovsepian,
President and CEO, Novell has put out a statement that it has considered the Elliott Management offer but finds it "inadequate". It's "business as usual at Novell". Here's the press release.

Here's the statement sent to customers:

Dear Customer:

I want to share with you an important announcement that
Novell made today.

As you may know, on March 2nd, Elliott Associates, L.P.
announced an unsolicited, conditional proposal to acquire
Novell. Today we issued a press release announcing that our
Board of Directors has concluded, after careful
consideration, including a review of the proposal with its
independent financial and legal advisors, that Elliott's
proposal is inadequate and that it undervalues the Company's
franchise and growth prospects.

Additionally, we announced that our Board has authorized a
thorough review of various alternatives to enhance
stockholder value.

Our relationship with you is extremely important to all of
us at Novell, and I want to assure you that you can remain
confident that we are committed to serving you as we always
have. I also want to reaffirm to you that it remains
business as usual at Novell, and we do not intend for there
to be any changes in our relationship with you. Please do
not hesitate to contact me or other members of our team at
any time; we always strive to be available to provide you
the best solutions for your needs.

On behalf of the Board and management team, I thank you for
your ongoing commitment to Novell.

Authorizes Exploration of Various Alternatives to Enhance Stockholder Value

Novell, Inc. (Nasdaq: NOVL) today announced that its Board has concluded, after careful consideration, including a review of the proposal with its independent financial and legal advisors, that the unsolicited, conditional proposal from Elliott Associates, L.P. to acquire the Company for $5.75 per share in cash is inadequate and that it undervalues the Company's franchise and growth prospects.

Novell also announced that its Board of Directors has authorized a thorough review of various alternatives to enhance stockholder value. These alternatives include, but are not limited to, a return of capital to stockholders through a stock repurchase or cash dividend, strategic partnerships and alliances, joint ventures, a recapitalization and a sale of the Company.

Novell's Board is committed to enhancing value for Novell stockholders and believes that an exploration of alternatives is in the best interests of the Company and its stockholders. Novell's Board noted that there can be no assurance that this will result in any agreement or transaction. The Company does not intend to disclose developments with respect to any of these alternatives unless and until the Board has approved a specific course of action.

The Blue Harbour Group, an investment firm that said it owns 4 percent of Novell, endorsed the company’s decision to reject Elliott’s bid.

“We agree with Novell’s management and board of directors that the company’s value significantly exceeds Elliott’s proposal,” Clifton S. Robbins, Blue Harbour’s chief executive, said in a statement. “Blue Harbour has been in active and constructive discussions with Novell’s management in recent months on various alternatives to create and unlock value.”